Employers are now looking for a better way to cut down health costs. Employers are telling workers that their company health plan will pay only a fixed amount for a given test or procedure, like a CT scan or knee replacement.
Under the program, some employees are being given the choice of going to one of 54 hospitals, including well-known medical centers like Cedars-Sinai and Stanford University Hospital, that have agreed to charge no more than $30,000 for a hip or knee replacement. Prices for the operation normally vary widely in the state, with hospitals billing from $15,000 to $110,000 for the same operation, a spread that is typical for much of the nation.
How are employers using this plan?
Employer sets a cap, based on what can be an average price for the service or a price that allows employees to select from a wide group of hospitals or doctors but still excludes the very high-priced providers.
Picture by leanhealthcarewest.com